Vanguard Emerging Markets Government Bond ETF (NasdaqGS: VWOB)
AUM: $144.8
Comment: This will not go down as a good year for emerging markets bonds ETFs, but VWOB is off to a good start in terms of attracting assets. Returns are a different matter as the new ETF is down 4.7% since its June launch. Russia and Brazil are VWOB’s largest country weights, combing for 23.8% of the ETF’s weight. Mexico, Turkey and Venezuela round out the top-five geographic weights.
Issues to consider include a possible credit downgrade for Brazil, that country’s upcoming elections, Turkey’s political volatility and severe currency issues and a dictatorship in Venezuela. [EM Bond ETFs Vulnerable After Moody’s Changes View on Brazil]